Gulf-based investment management firm Investcorp has launched a new business to invest in mid-size alternative asset managers as it seeks to expand the scope of its private equity and venture capital investments across the globe.
Investcorp said in a statement that Strategic Capital Partners will acquire minority equity stakes in the General Partners (GPs) of established alternative asset managers including private equity, private debt, real estate, venture capital and hedge fund managers.
The sale of GP stakes helps smaller asset managers to keep expanding.
The business will be led by Anthony Maniscalco who joins as the managing partner and head of Strategic Capital Partners within Investcorp's Absolute Return Investments group.
He is joined by his former Credit Suisse colleagues — David Lee as a partner, and Dhanraj Chandiramani as a vice-president.
“Anthony’s deep experience in the alternative investment management space will be a great addition to our team as we continue to grow our alternatives strategy across the globe," said Rishi Kapoor, co-chief executive officer of Investcorp.
The development comes months after VCCircle reported that IDFC Alternatives, the private equity arm of non-banking financial company IDFC Ltd, was in advanced talks with Investcorp to sell its PE fund and real estate investment practice.
Investcorp was also in the race to clinch IDFC Alternatives’ infrastructure funds but eventually lost out to US-based private equity firm Global Infrastructure Partners (GIP).
Founded in 1982, Investcorp's principal client base is in the six countries of the Gulf Cooperation Council. It also has institutional clients in North America and Europe.
Since its inception, the firm has made about 175 corporate investments in the US, Europe, West Asia and North Africa, across a range of sectors including retail and consumer products, technology, business services and industrials.
Besides, Investcorp has more than 500 commercial and residential real estate investments in the US and Europe. It employs around 400 people in its offices in New York, London, Bahrain, Abu Dhabi, Doha, Riyadh and Singapore.
The firm has rapidly expanded in recent years, especially after Mohammed Alardhi took over as the executive chairman in 2015. Its high-profile acquisitions via its corporate investments unit in the past include luxury brands such as Tiffany & Co., Saks Fifth Avenue, Gucci and Breguet.
Investcorp's assets under management have doubled in a short span thanks to its 2016 acquisition of the UK-based 3i's $12 billion debt management business. At the time, Alardhi had said that Investcorp hoped to increase its assets under management to $25 billion in the medium term.
As of June 30, 2018, Investcorp had $22.6 billion in total assets under management (AUM), including assets managed by third-party managers and assets subject to a non-discretionary advisory mandate where Investcorp receives fees calculated on the basis of AUM.